With a market capitalization of $121.76 million, Sensus Healthcare, Inc. (SRTS) in Boca Raton, Fla., is a medical device company that manufactures and sells radiation therapy devices to healthcare providers worldwide. Its stock is currently trading 39% below its 52-week high of $11.96, which it hit on March 24, 2022. However, it sold its Sculptura assets to Empyrean Medical Systems for $15 million in cash, which helped the company to focus on the core dermatology market while providing capital for channel expansion.
SRTS’ board of directors has authorized a program to purchase up to $3 million of shares of its common stock, building shareholder value. The company has also announced that a mata mata turtle has joined the growing list of animal species successfully treated with its SRT-100 system. This may help open a potential new market for its solution.
The stock has gained 101.7% in price over the past year to close Friday’s trading session at $7.30. So, the stock’s near-term prospects look bright.
Here is what I think could influence SRTS’ performance in the upcoming months:
Robust Financials
SRTS’ revenue increased 156% year-over-year to $13 million in the fourth quarter, which ended Dec.31, 2021. The company’s adjusted EBITDA grew 330.8% year-over-year to $5.60 million, while its net income came in at $5.30 million, representing a 430% year-over-year increase. Also, its EPS was $0.32, up 433.3% year-over-year.
Favorable Analyst Estimates
For the quarter ending June 30, 2022, analysts expect SRTS’ EPS and revenue to grow 400% and 83.9%, respectively, year-over-year to $0.06 and $7.87 million. In addition, Wall Street analysts expect the stock to hit $11.75 in the near term, indicating a potential upside of 61.4%.
High Profitability
In terms of trailing-12-month EBIT margin, SRTS’ 15.24% is 1,338.1% higher than the 1.06% industry average. And its trailing-12-month EBITDA margin of 17.83% is 273.4% higher than the 4.77% industry average. Furthermore, the stock’s 0.90% and 62.82% respective trailing-12-month asset turnover ratio and gross profit margin are higher than the 0.35% and 55.24% industry averages.
POWR Ratings Show Promise
SRTS has an overall rating of B, which equates to a Buy in our POWR Ratings system. The POWR Ratings are calculated by accounting for 118 distinct factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. Among these categories, SRTS has a B grade for Quality, which is in sync with its higher-than-industry profitability ratios.
SRTS also has an A grade for Sentiment and a B grade for Growth, consistent with its revenue and earnings growth estimates.
Beyond what I have stated above, we have also given SRTS grades for Value, Stability, and Momentum. Get all the SRTS ratings here.
SRTS is ranked #21 out of 159 stocks in the Medical - Devices & Equipment industry.
Click here to checkout our Healthcare Sector Report for 2022
Bottom Line
SRTS reported impressive fiscal fourth-quarter results and affirmed first-quarter continued growth and full-year 2022 profitability expectations. It is well-positioned to benefit from the strong demand from the People’s Republic of China. So, we think it could be wise to buy the dip in the stock.
How Does Sensus Healthcare (SRTS) Stack Up Against its Peers?
SRTS has an overall POWR Rating of B. One could also check out these other stocks within the Medical - Devices & Equipment industry with an A (Strong Buy) rating: Fonar Corporation (FONR), Abbott Laboratories (ABT), and Electromed, Inc. (ELMD).
SRTS shares were trading at $7.41 per share on Monday afternoon, up $0.11 (+1.51%). Year-to-date, SRTS has gained 2.63%, versus a -9.59% rise in the benchmark S&P 500 index during the same period.
About the Author: Nimesh Jaiswal
Nimesh Jaiswal's fervent interest in analyzing and interpreting financial data led him to a career as a financial analyst and journalist. The importance of financial statements in driving a stock’s price is the key approach that he follows while advising investors in his articles.
The post Sensus Healthcare: A Small-Cap Stock with Huge Potential appeared first on StockNews.com